Commodity Market Updates, September 19: Crude oil declines; Silver, Gold futures rebound

Here is how different commodity futures were trading on September 19.

Gold futures

Gold prices snapped their three-day losing streak and rebounded by ₹572 to ₹1,09,624 per 10 grams in the domestic futures market on Friday, September 19, driven by value buying and firm global cues after the US Federal Reserve lowered its benchmark rate by 25 basis points to a range of 4–4.25%, its first cut since December.

On the Multi Commodity Exchange (MCX), gold futures for October delivery climbed ₹572 or 0.52% to ₹1,09,624 per 10 grams in a business turnover of 12,685 lots. Similarly, the December contract appreciated by ₹516 or 0.47% to ₹1,10,650 per 10 grams.

In the international market, gold futures for December delivery rose $13.40 or 0.36% to $3,691.70 per ounce.

Silver futures

Silver prices also surged in line with gains in gold. On the MCX, the white metal futures for December delivery rallied ₹1,668 or 1.31% to ₹1,28,800 per kilogram in 17,935 lots.

Silver futures for the March next year delivery climbed ₹1,573 or 1.22% to ₹1,30,224 per kg.

Globally, silver futures for December delivery gained 1.22% to $42.67 per ounce.

Zinc futures

Zinc prices rose 80 paise to ₹282.65 per kilogram in futures trade amid a pick-up in spot demand.

On the MCX, zinc contracts for October delivery traded higher by 80 paise or 0.28% at ₹282.65 per kg with a business turnover of 1,181 lots.

Marketmen said the widening of positions by participants, following a pick-up in demand from consuming industries, kept zinc prices higher in the futures trade.

Copper futures

Copper futures surged 0.35% to ₹912 per kilogram due to higher spot demand.

On the MCX, copper contracts for October delivery grew by ₹3.20 or 0.35% to ₹912 per kg in a business turnover of 4,653 lots.

Analysts attributed the rise in copper prices to higher bets by participants.

Aluminium futures

Aluminium prices remained flat at ₹261.65 per kilogram in the futures trade as traders kept to the sidelines amid muted demand from consuming industries.

On the MCX, October delivery for aluminium traded unchanged at ₹261.65 per kg in 1,885 lots.

Market experts said participants opted for a wait-and-watch approach and refrained from building fresh positions, keeping prices flat in the absence of any major movement in spot demand.

Crude oil futures

Crude oil futures fell ₹5 to ₹5,578 per barrel, as participants trimmed their positions, tracking weak demand in the spot market.

On the MCX, crude oil for October delivery declined ₹5, or 0.09%, to ₹5,578 per barrel in 11,183 lots.

Analysts said the prices were affected after participants offloaded their holdings amid weak demand in the spot market.

Globally, West Texas Intermediate crude oil was trading 0.52% lower at $63.24 per barrel, while Brent Crude fell 0.40% to $67.17 per barrel in New York.

Cottonseed oil cake futures

Cottonseed oil cake prices declined marginally to ₹2,901 per quintal in futures trade as participants reduced their bets following weak trends in the spot market.

On the National Commodity and Derivatives Exchange (NCDEX), cottonseed oil cake for December delivery traded lower by ₹1 or 0.03% at ₹2,901 per quintal with an open interest of 14,420 lots.

Analysts said a sell-off by participants at existing levels amid a subdued trend in the market mainly weighed on cottonseed oil cake prices.

Coriander futures

Coriander prices increased by ₹88 to ₹8,352 per quintal in futures trade as speculators increased their holdings, tracking a firm trend in the spot market.

On the NCDEX, coriander contracts for October delivery climbed ₹88 or 1.05% to ₹8,352 per quintal in 16,245 lots.

A firm trend in the spot market and restricted supplies from producing regions pushed up coriander prices, market analysts said.

Guar gum futures

Guar gum prices fell ₹12 to ₹9,162 per quintal in the futures trade as traders offloaded their holdings in line with a weak trend in the spot market.

On the NCDEX, guar gum for October delivery declined by ₹12 or 0.13% to ₹9,162 per quintal in 50,730 lots.

Marketmen said slackness in demand in the spot market and ample supplies from growing regions put pressure on guar gum prices.

Guar seed futures

Guar seed prices declined by ₹2 to ₹5,055 per quintal in futures trade amid ample supplies.

On the NCDEX, guar seed contracts for October delivery fell ₹2 or 0.04% to ₹5,055 per quintal with an open interest of 52,120 lots.

Marketmen attributed the downward trend in guar seed prices to increasing supplies from growing regions.